Malaysian bank to purchase Vietnam Securities Corporation's shares
RHB Bank, Malaysia`s fourth-largest lender by assets, has announced that it plans to acquire the 51% stake in Vietnam Securities Corporation (VNSEC) for VND121.63 million (US$5.37 million) in cash.
The bank, through its wholly-owned subsidiary RHB Investment Bank Berhad, has entered into a conditional share purchase agreement with Chu Thi Phuong Dung, Truong Lan Anh and Viet Quoc Insurance Broker for the acquisition of the remaining 51% equity interest in VNSEC.
RHB Bank is Malaysia's fourth-largest lender by assets.
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Upon completion of the proposed acquisition and subject to approval from Vietnam SSC, VNSEC will become a wholly-owned subsidiary of RHB Investment Bank.
The company will also seek the conversion of the status of VNSEC from a joint stock company into a single-member limited liability company from Vietnam SSC.
The proposed acquisition is expected to be completed by the second quarter of 2018, according to the bank's annoucement.
The acquisition will not have any effect on the issued capital and substantial shareholders' holdings in RHB Bank, and it is not expected to have any material effect on the earnings and net assets of RHB Bank and its subsidiaries for the financial year ending December 31, 2018.
VNSEC was established in December 2006 under decision No.21 issued by Vietnam SSC and commenced operations in March 2007. RHB currently has a 49% stake in the Vietnamese securities corporation, which was acquired in November 2008. In January 2009, RHB Bank officially became a strategic partner of VNSEC.
RHB Bank Berhad was granted a license to open its representative office in Ho Chi Minh City in 2008.
The RHB Banking Group, with RHB Bank Berhad as the holding company, is the fourth largest fully integrated financial services group in Malaysia and listed on the Main Market of the Malaysian Stock Exchange (BURSA).
The group's core businesses are structured into seven main businesses, namely Group Retail Banking, Group Business & Transaction Banking, Group Wholesale Banking, RHB Singapore, Group Shariah Business, Group International Business and Group Insurance.
RHB Bank shares closed four sen or 0.77% lower at RM5.17 (US$1.31) on February 9, bringing it a market capitalization of RM20.73 billion (US$5.25 billion).
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